From great 7th Pay Commission allowance news latest 2017 for over 47 lakh Central government employees, to in principle nod for disinvestment of Air India, development of six-laning of Chakeri-Allahabad section of National Highway (NH) – 2 in Uttar Pradesh, the Prime Minister Narendra Modi led Union Cabinet today cleared a number of crucial reform decisions that will impact the Indian economy in various ways from infrastructure to wallets of babus, which itself is expected to boost spending.

While the 7th Pay Commission nod on allowances would be very welcome for the babus concerned, what has really grabbed eye-balls today was the clearance to disinvestment of Air India. However, it has left pending the final modalities, including the quantum of stake sale.

This will be decided by a group of ministers (GoM). In his speech to the media, Finance Minister Arun Jaitley said “in-principle” approval for disinvestment of Air India has been given. Air India has been debt laden of over Rs 52,000 crore and is surviving on a Rs 30,000-crore bailout package extended by the previous UPA government in 2012.

1. Cabinet approves recommendations of 7th CPC on Allowances with 34 modifications; revised rates effective from 1 July 2017 The Union Cabinet chaired by the Prime Minister Shri Narendra Modi approved the recommendations of the 7th CPC on allowances with some modifications. The revised rates of the allowances shall come into effect from 1st July, 2017 and shall affect more than 48 lakh central government employees. While approving the recommendations of the 7th CPC on 29th June, 2016, the Cabinet had decided to set up the Committee on Allowances (CoA) in view of substantial changes in the existing provisions and a number of representations received. The modifications are based on suggestions made by the CoA in its Report submitted to Finance Minister on 27th April, 2017 and the Empowered Committee of Secretaries set up to screen the recommendations of 7th CPC.

2. Cabinet gives in-principle approval for disinvestment of Air India.. Cabinet approves recommendations of NITI Aayog on disinvestment of AI and five of its subsidiaries. Group will be set up to finalize modalities/details of disinvestment of Air India, such as extent, etc.

3. Cabinet approves signing of a Memorandum of Cooperation between India and the USA on Homeland Security. The Memorandum of Cooperation will further strengthen bilateral security relations between India and the USA and will also help in coordination and interactions among the six Sub-Groups that are proposed to be formed under Homeland Security Dialogue between the two countries.

4. Cabinet approves MoU between India and Israel on National Campaign for Water Conservation in India.This will benefit the country in conserving water for future generations. The two countries shall work to enhance cooperation at the national, regional and international level to design, implement and monitor a professionally-designed National Water Conservation campaign in India. The Ministries agree to jointly work on the water conservation campaign to achieve the following objectives:

a. Put water conservation on the national agenda in India

b. Encouraging every citizen to save water in everyday life

c. Generating awareness about water

d. Promoting Re-use, Recharge and Recycling of water

e. Development of digital tools such as websites, mobile applications on the subject of water conservation.

5. Cabinet approves development of six-laning of Chakeri-Allahabad section of National Highway (NH) – 2 in Uttar Pradesh. The project cost is estimated to be Rs 3,691.09 crore (land acquisition, resettlement and rehabilitation and other pre-construction activities). The total length to be developed is 145 kms. Project will be done under Hybrid Annuity Mode (HAM). The project will reduce time and cost of travel for traffic between Chakeri and Allahabad.

This project is a part of Golden Quadrilateral between Delhi and Kolkata and its impact will be on the South-Western part of Uttar Pradesh and affect settlements like Kanpur, Ruma, Chaudagra, Malwa, Fatehpur and Kaushambi.